| €000 | 2022|23 | 2021|22 | Change absolute | Change % |
|---|---|---|---|---|
| Revenue | 3,637,442 | 2,901,544 | 735,898 | 25.4% |
| Changes in inventories of finished and unfinished goods | 236,416 | 99,051 | 137,365 | 138.7% |
| Own work capitalised | 2,348 | 2,069 | 279 | 13.5% |
| Other operating income | 51,948 | 35,742 | 16,206 | 45.3% |
| Cost of Materials | (2,873,077) | (2,169,319) | -703,758 | -32.4% |
| Staff cost | (377,523) | (347,226) | -30,297 | -8.7% |
| Depreciation, amortisation and impairment losses | (209,795) | (176,999) | -32,796 | -18.5% |
| Other operating expenses | (398,156) | (328,149) | -70,007 | -21.3% |
| Share of results of equity-accounted joint ventures | 18,657 | 8,019 | 10,638 | 132.7% |
| Operating profit [EBIT] | 88,260 | 24,732 | 63,528 | 256.9% |
| Finance income | 49,385 | 28,564 | 20,821 | 72.9% |
| Finance expense | (75,927) | (44,663) | -31,264 | -70.0% |
| Net financial items | (26,542) | (16,099) | -10,443 | -64.9% |
| Profit before tax | 61,718 | 8,633 | 53,085 | 614.9% |
| Income tax expense | (37,035) | (20,866) | -16,169 | -77.5% |
| Profit for the period | 24,683 | (12,233) | 36,916 | 301.8% |
| - Attributable to shareholders of the parent | 15,816 | (12,612) | 28,428 | 225.4% |
| - Attributable to non-controlling interests | 8,867 | 379 | 8,488 | 2239.6% |
| Earnings per share under IFRS (basic and diluted) | 0.25 € | (0.20) € | 0.45 | 225.0% |
In the 2022|23 financial year, revenue of the AGRANA Group was € 3,637.4 million, up significantly from one year earlier, with the growth coming from a combination of adjusted prices in all segments and stable sales volumes in the Fruit and Sugar segments.
Operating profit (EBIT) in 2022|23 was € 88.3 million, a very significant increase from the year-ago level of € 24.7 million. The earnings growth was driven by a greatly improved pre-exceptionals operating profit and an increase in results of equity-accounted joint ventures. As in the prior year, the Group recognised impairment charges resulting from the war in Ukraine. These led to a net exceptional items expense of € 88.8 million (prior year: net expense of € 69.8 million). Details are presented in the Fruit segment report (Frucht) and in the Notes. In the Fruit segment, impairment of goodwill and assets as a result of increased cost of capital due to the war in Ukraine led to negative EBIT of € 38.5 million (prior year: EBIT loss of € 15.8 million). The segment’s operating performance before exceptional items was stable thanks to an extraordinarily good showing in the fruit juice concentrate business. High ethanol prices in the first half of 2022|23 and a flourishing wheat gluten business were the main reasons for an improvement in the Starch segment’s EBIT to € 80.2 million. The Sugar segment returned to profit thanks to higher sales prices and margins, delivering EBIT operating profit of € 46.6 million (prior year: EBIT loss of € 31.1 million). Details on the share of results of equity-accounted joint ventures, which play a role in Starch and Sugar EBIT, can be found in the segment reports and the Notes.
Net financial items amounted to an expense of € 26.5 million in the 2022|23 financial year (prior year: net expense of € 16.1 million), with the deterioration driven primarily by more-adverse currency translation effects (including the interest portion of currency swaps). One important financial item, net interest expense, was also higher than in the previous year, as the cost of capital in the markets rose very significantly since summer 2022.
Profit before tax jumped strongly from the prior year’s € 8.6 million to € 61.7 million. After an income tax expense of € 37.0 million, representing a tax rate1 of 60.0% (prior year: 241.7%), the Group registered a profit for the period of € 24.7 million (prior year: loss for the period of € 12.2 million). Profit for the period attributable to shareholders of AGRANA was € 15.8 million (prior year: € 12.6 million); earnings per share increased to a positive € 0.25 (prior year: loss per share of € 0.20).
1 For details on the tax rate and income tax reconciliation, see the Notes
| €000 | 28 February 2023 | 28 February 2022 | Change absolute | Change % |
|---|---|---|---|---|
ASSETS | ||||
| A. Non-current assets | ||||
| Intangible assets | 115,098 | 204,554 | –89,456 | -43.7% |
| Property, plant and equipment | 819,418 | 828,168 | –8,750 | -1.1% |
| Equity-accounted joint ventures | 66,460 | 65,952 | 508 | 0.8% |
| Securities | 17,378 | 18,772 | –1,394 | -7.4% |
| Investments in non-consolidated subsidiaries and outside companies | 280 | 280 | 0 | 0.0% |
| Other assets | 2,559 | 3,500 | –941 | -26.9% |
| Deferred tax assets | 19,817 | 13,734 | 6,083 | 44.3% |
| 1,041,010 | 1,134,960 | –93,950 | -8.3% | |
| B. Current assets | ||||
| Inventories | 1,210,019 | 864,067 | 345,952 | 40.0% |
| Trade receivables | 471,495 | 398,509 | 72,986 | 18.3% |
| Other assets | 158,702 | 132,757 | 25,945 | 19.5% |
| Current tax assets | 3,506 | 9,744 | –6,238 | -64.0% |
| Cash and cash equivalents | 118,343 | 103,593 | 14,750 | 14.2% |
| 1,962,065 | 1,508,670 | 453,395 | 30.1% | |
| Total assets | 3,003,075 | 2,643,630 | 359,445 | 13.6% |
EQUITY AND LIABILITIES | ||||
| A. Equity | ||||
| Share capital | 113,531 | 113,531 | 0 | 0.0% |
| Share premium and other capital reserves | 540,760 | 540,760 | 0 | 0.0% |
| Retained earnings | 539,284 | 570,269 | –30,985 | -5.4% |
| Equity attributable to shareholders of the parent | 1,193,575 | 1,224,560 | –30,985 | -2.5% |
| Non-controlling interests | 62,994 | 56,982 | 6,012 | 10.6% |
| 1,256,569 | 1,281,542 | –24,973 | -1.9% | |
| B. Non-current liabilities | ||||
| Retirement and termination benefit obligations | 53,535 | 58,848 | –5,313 | -9.0% |
| Other provisions | 28,388 | 29,364 | –976 | -3.3% |
| Borrowings | 562,868 | 377,744 | 185,124 | 49.0% |
| Other payables | 6,670 | 5,363 | 1,307 | 24.4% |
| Deferred tax liabilities | 6,841 | 6,218 | 623 | 10.0% |
| 658,302 | 477,537 | 180,765 | 37.9% | |
| C. Current liabilities | ||||
| Other provisions | 19,516 | 19,028 | 488 | 2.6% |
| Borrowings | 257,748 | 276,627 | –18,879 | -6.8% |
| Trade payables | 586,991 | 440,130 | 146,861 | 33.4% |
| Other payables | 199,479 | 143,780 | 55,699 | 38.7% |
| Tax liabilities | 24,470 | 4,986 | 19,484 | 390.8% |
| 1,088,204 | 884,551 | 203,653 | 23.0% | |
| Total equity and liabilities | 3,003,075 | 2,643,630 | 359,445 | 13.6% |
Total assets as of 28 February 2023, at € 3.0 billion, were up significantly from one year earlier (28 February 2022: € 2.64 billion), with an equity ratio of 41.8% (28 February 2022: 48.5%).
The value of non-current assets decreased moderately, by € 94.0 million, due to impairment of assets and goodwill in the Fruit segment. Current assets showed a significant increase of € 453.4 million, with a rise both in inventories (as a result of higher raw material and energy costs) and in trade receivables.
Non-current liabilities rose considerably, by € 180.8 million, due primarily to an increase in long-term borrowings. Current liabilities were also up, by a significant € 203.7 million, as a result of higher trade payables and other payables.
| €000 | 2022|23 | 2021|22 | Change absolute | Change % |
|---|---|---|---|---|
| Profit/(loss) for the period | 24,683 | (12,233) | 36,916 | 301.8% |
| Depreciation, amortisation and impairment of non-current assets | 210,014 | 177,372 | 32,642 | 18.4% |
| Reversal of impairment losses on non-current assets | (211) | (283) | 72 | 25.4% |
| (Gains) on disposal of non-current assets | (743) | (5,251) | 4,508 | 85.9% |
| Changes in non-current provisions | (3,982) | (5,251) | 598 | 13.1% |
| Share of results of equity-accounted joint ventures | (18,657) | (8,019) | –10,638 | -132.7% |
| Dividends received from equity-accounted joint ventures | 11,500 | 12,500 | -1,000 | -8.0% |
| Loss on net monetary position under IAS 29 | 1,913 | 1,038 | 875 | 84.3% |
| Non-cash expenses/income and other adjustments | 57,826 | 46,681 | 11,145 | 23.9% |
| Operating cash flow before changes in working capital | 282,343 | 207,225 | 75,118 | 36.2% |
| Changes in inventories | (344,709) | (162,853) | –181,856 | -111.7% |
| Changes in receivables and current assets | (112,611) | (122,344) | 9,733 | 8.0% |
| Changes in current provisions | (57) | 997 | –1,054 | -105.7% |
| Changes in payables (excluding borrowings) | 198,152 | 155,208 | 42,944 | 27.7% |
| Changes in working capital | (259,225) | (128,992) | –130,233 | -101.0% |
| Interest received | 1,145 | 742 | 403 | 54.3% |
| Interest paid | (11,222) | (7,617) | –3,605 | -47.3% |
| Tax paid | (11,151) | (18,123) | 6,972 | 38.5% |
| Net cash from operating activities | 1,890 | 53,235 | –51,345 | -96.4% |
| Dividends received | 28 | 33 | -5 | -15.2% |
| Proceeds from disposal of non-current assets | 1,430 | 7,897 | –6,467 | -81.9 |
| Purchases of property, plant and equipment and intangible assets, net of government grants | (89,236) | (77,018) | –12,218 | -15.9% |
| Proceeds from disposal of securities | 0 | 94 | -94 | -100.0% |
| Purchase of a business/of a subsidiary, net of cash acquired | (1,216) | (3,630) | 2,414 | 66.5% |
| Net cash (used in) investing activities | (88,994) | (72,624) | –16,370 | -22.5% |
| Proceeds from/(repayment of) Schuldscheindarlehen, or bonded loan | 228,000 | 0 | 228,000 | n/a |
| Outflows from lease liabilities | (6,361) | (5,808) | –553 | -9.5% |
| Repayment of investment loan of the European Investment Bank | (4,882) | (4,882) | 0 | 0.0% |
| Proceeds from/(repayment of) from syndicated loans | 140,000 | 0 | 140,000 | n/a |
| (Outflows)/inflows from bilateral loans and from bank overdrafts and cash advances | (201,481) | 84,043 | –285,524 | -339.7% |
| Capital increase in a subsidiary trough non-controlling interests | 0 | 1,800 | -1,800 | -100.0% |
| Purchase of non-controlling interests | 0 | (4,201) | 4,201 | -100.0% |
| Dividend paid | (48,057) | (53,357) | 5,300 | 9.9% |
| Net cash from financing activities | 107,219 | 17,595 | 89,624 | 509.4% |
| Net increase/(decrease) in cash and cash equivalents | 20,115 | (1,794) | 21,909 | 1221.2% |
| Effect of movement in foreign exchange rates on cash and cash equivalents | 1,941 | (52) | 1,993 | 3832.7% |
| Cash acquired in initial consolidation of subsidiaries | 0 | 753 | -753 | -100.0% |
| Effect of IAS 29 on cash and cash equivalents | (7,306) | (6,285) | –1,021 | -16.2% |
| Cash and cash equivalents at beginning of period | 103,593 | 110,971 | –7,378 | -6.6% |
| Cash and cash equivalents at end of period | 118,343 | 103,593 | 14,750 | 14.2% |
Thanks mostly to the improved operating performance, operating cash flow before changes in working capital was up € 75.1 million year-on-year to a new total of € 282.3 million. After a mainly inventory-driven, larger increase of € 259.2 million in working capital than a year ago (prior year: increase of € 129.0 million), net cash from operating activities decreased to € 1.9 million (prior year: € 53.2 million). Net cash used in investing activities rose significantly to € 89.0 million as a result primarily of lower proceeds from the disposal of non-current assets and higher payments for purchases of property, plant and equipment and intangibles. With a moderately lower dividend payment, a significant year-on-year increase in borrowings (including the placement of an ESG-linked Schuldscheindarlehen) led to a net cash inflow of € 107.2 million from financing activities (prior year: net cash inflow of € 17.6 million). Free cash flow was negative at a deficit of € 19.4 million (prior year: positive free cash flow of € 84.0 million).
Net debt as of 28 February 2023 stood at € 684.9 million, up € 152.9 million from the 2021|22 year-end level. The gearing ratio (net debt to total equity) at the balance sheet date was thus 54.5% (28 February 2022: 41.5%).
At the beginning of December 2022, AGRANA Beteiligungs-AG for the first time issued an ESG-linked Schuldscheindarlehen (SSD) in the euro capital market (an SSD is a type of loan with bond-like characteristics). In response to the strong demand for the significantly oversubscribed issue, the initially planned deal size was expanded from € 100 million to € 235 million. The proceeds are used for general corporate financing purposes. The SSD issue also helped to further diversify and optimise the investor and funding mix.